Fat Luser Trump Warns of Big Losses From Asset Sales During Property Slump

Ex-president needs to satisfy $454 million court judgment
Trump seeks to halt payment during appeal of NY fraud verdict

The timing couldn�t be worse for Donald Trump as he faces the prospect of
having to sell property to cover a massive verdict against him. The former
president said in a court filing Wednesday he may soon need �to raise
capital under exigent circumstances� to push ahead with an appeal New York
state�s $454 million civil fraud verdict against him. A brutal market for
many commercial property owners means he faces significant losses in his
real estate empire if he unloads assets. The billionaire has few options.
He must pay the full judgment by March 25 or arrange a bond for at least
110% of the amount in order to put the fine on hold while he appeals. To
get an appeal bond, Trump will need to hand over cash, sell properties or
use them as collateral, tying up most if not all of his liquid assets for
months or longer. Unless Trump can convince the appeals court to put the
verdict on hold during his entire appeal, he could find himself in a
financial squeeze. If he�s forced to sell, �there would be no way to
recover any property sold following a successful appeal and no means to
recover the resulting financial losses,� Trump attorney Alina Habba said
in the filing. Meanwhile, New York Attorney General Letitia James has made
clear that she�s prepared to seize Trump�s assets if he doesn�t pay the
verdict or post an appeals bond on time. Brutal Market
Making matters worse is a brutal market for many commercial real estate
owners. Property values plunged as borrowing costs rose, and the remote
work trend that started during the pandemic continues to cut into demand
for office space. Prices slumped 22% in the year through January,
according to real estate analytics firm Green Street. Habba didn�t
immediately respond to a request for comment. Many sellers have been
forced to accept drastically lower prices. The Aon Center, a Los Angeles
office tower, recently sold for $147.8 million, about 45% less than its
previous purchase price in 2014. A Los Angeles office building located
near Century City and Beverly Hills sold for about 52% less than its price
five years ago. Read More
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The Trump Organization owns or invests in multiple office towers from New
York to San Francisco. One of its key Manhattan properties, 40 Wall St.,
was purchased by Trump in what his business hails as �one of the great
real estate deals of all time� back in 1995. In 2015, it was valued at
$540 million, according to commercial mortgage-backed securities data.
That has since fallen to $270 million, the Bloomberg Billionaires Index
estimates. Trump�s filing with the appeals court was the first time he�s
hinted publicly that he may not have enough liquid assets to cover the
verdict in the fraud case, where a judge ruled Feb. 16 that the former
president had misled banks for years in violation of New York law. Trump
also owes $83.3 million to writer E. Jean Carroll, who won a defamation
suit against him last month, making matters even worse for the
presidential candidate. In testimony last year, Trump claimed to have more
than $400 million in cash. While that�s a hefty sum, it wouldn�t be enough
to cover the bonds he�d need to post with the court while appealing the
back-to-back verdicts. Trump has proposed posting a smaller $100 million
bond while he appeals the New York fraud verdict, arguing that the
judgment against him was �more than adequately secured� without posting a
full bond to appeal. Trump said his �vast ownership interests in New York
real estate� was sufficient to ensure he�ll pay the fine if his appeal
failed. After all, he argued, �trophy properties� like 40 Wall Street
cannot be �removed from the jurisdiction in secret.� In the appeals court
filing, Trump�s attorney said other properties could be used for
collateral, including Trump Tower and Trump Park Avenue in Manhattan, his
Seven Springs estate outside New York City, and Trump National Golf Club.
�Insufficient� Assets
James balked at Trump�s offer for a smaller bond, arguing in a letter to
the appeals court that risked leaving the state empty handed if Trump�s
appeal failed. Trump and the other defendants in the case, including his
two grown sons, �all but concede that Mr. Trump has insufficient liquid
assets to satisfy the judgment,� James said in the letter. �A prevailing
plaintiff is entitled to have her award secured, and defendants have never
demonstrated that Mr. Trump�s liquid assets could satisfy the full amount
of the judgment.� James has made clear that she�s prepared to seize
Trump�s assets if he doesn�t pay the verdict or post an appeals bond on
time, mentioning 40 Wall Street explicitly as a potential target in a
recent interview with ABC News. Habba, Trump�s attorney, criticized those
remarks in her letter to the court, accusing James of �shamelessly�
threatening to seize Trump�s assets �if she is not paid quickly enough.�
Despite Trump�s warnings about his financial condition, an appeals court
judge in Manhattan denied his emergency request Wednesday for a temporary
halt to enforcement of the verdict in the fraud case, at least for now.
But the former president will get another shot at arguing for a delay that
would last throughout his legal challenge to the civil fraud judgment.
James will file a response to that request by March 11, with any response
by Trump due March 18. A full appeals court panel could rule any time
after that.